At a Glance
- Anglo American and Codelco signed MoU to optimize operations at Los Bronces and Andina, unlocking 3.7 million tonnes of copper with minimal capital investment over 21 years.
- The partnership will boost production by 120,000 tonnes annually, generating $35 billion in revenue while maintaining independent ownership of assets.
- A new jointly owned company will oversee operations, with both firms equally sharing costs, revenues, and liabilities under strict sustainability and regulatory commitments.
Anglo American plc, the global mining giant, has signed a memorandum of understanding (MoU) with Chile’s state-owned Codelco to integrate mine planning at their adjacent Los Bronces and Andina copper mines.
The agreement, expected to unlock 2.7 million tonnes of additional copper production over 21 years starting in 2030, is projected to generate a staggering $35 billion in revenue.
Unlocking the full potential of a world-class mining district
With Los Bronces and Andina collectively holding approximately 60 million tonnes of contained copper, the collaboration aims to enhance efficiency by maximizing processing capacity and streamlining operations.
Importantly, the plan requires minimal additional capital investment, leveraging existing infrastructure to boost production.
Strategic partnership to optimize operations
The agreement establishes a new jointly owned operating company responsible for coordinating mining activities, although Anglo American Sur (AAS) and Codelco will retain full ownership of their respective assets.
Production, revenues, costs, and liabilities from the joint mine plan will be shared equally between both parties.
Anglo American’s Chief Executive, Duncan Wanblad, emphasized the strategic significance of copper in the company’s growth ambitions, stating: “This agreement enables us to unlock significant value in a world-class mining district.
By optimizing our respective processing plants and coordinating our operations, we can achieve meaningful production growth while ensuring sustainability and operational synergies.”
Codelco’s commitment to chile’s mining leadership
Codelco Chairman Máximo Pacheco highlighted the broader implications of the deal for Chile’s mining sector, noting that it will position Los Bronces and Andina as one of the world’s top copper-producing districts. “This alliance allows us to increase copper production by nearly 120,000 tonnes per year, making this district the third-largest in Chile and fourth-largest globally.
It strengthens Chile’s role as a leading copper supplier and supports the global transition to a decarbonized economy.”
Sustainability and regulatory considerations
Both companies have committed to upholding environmental and social responsibilities, ensuring alignment with existing sustainability principles.
The implementation of the joint mine plan remains subject to due diligence, regulatory approvals, and environmental permits, with definitive agreements expected by H2 2025.
In the meantime, Los Bronces and Andina will continue operating independently under the existing 2019 cooperation agreement.
Strategic positioning for future growth
This landmark partnership underscores Anglo-American’s long-term commitment to copper, a critical mineral for renewable energy technologies and electrification.
The agreement also aligns with Codelco’s strategic objective of maintaining Chile’s dominance in global copper production, ensuring sustainable economic value for decades to come.
